CESTAT: Polyester Film Slitting Not Manufacturing

VENLON POLYESTER FILM LIMITED Versus COMMISSIONER OF C. EX., VALSAD, VAPI

VENLON POLYESTER FILM LIMITED Versus COMMISSIONER OF C. EX., VALSAD, VAPI - 2004 (175) E.L.T. 782 (Tri. - Bang.) Issues:
1. Whether slitting of polyester film into smaller length amounts to manufacture or not.

Analysis:
The judgment by the Appellate Tribunal CESTAT, Bangalore involved a miscellaneous application filed by a party for retention of the file, which was granted by the registry. The Tribunal, after hearing arguments related to a stay petition, decided to dispose of the matter on the limited issue at hand. The parties agreed to proceed with regular hearing without the need for a deposit. The main issue in question was whether the slitting of polyester film into smaller lengths constitutes manufacturing.

During the proceedings, the party's counsel referred to a previous decision by CEGAT Mumbai Bench in a similar case, highlighting the importance of considering each process involved in determining whether manufacturing has occurred. The counsel argued that the conversion of polyester film into smaller pieces should not be classified as manufacturing based on this precedent. On the other hand, the Departmental Representative supported the department's action.

After carefully considering the arguments presented by both sides and referencing the previous decision, the Tribunal accepted the party's plea. The Tribunal held that the conversion of polyester film into smaller pieces does not amount to manufacturing. Consequently, all the appeals were allowed based on this determination.

In conclusion, the judgment clarified the distinction between processes that constitute manufacturing and those that do not. By analyzing the specific case of slitting polyester film, the Tribunal provided a clear decision based on legal precedent and the facts presented during the proceedings.